Online retail giant Amazon is likely to launch its own system for ads placements based on its web shopping database, in an attempt to beat tech bigwigs like search engine Google and social networking site Facebook.
Analysts call the move very profitable for the online shopping retailer as they say Amazon posses the best data for targeting ads.
According to the tech experts, the main ingredient for delivering relevant and catchy ads is data – Personal, Demographic or Psychographic data. Google enriches its database from our searches . One the other hand, Facebook updates its database with our likes and shares. Being an online retailer, Amazon has a good collection of data as it knows ‘what we browse and buy’.
Market analysts say Amazon’s new ad placement platform, likely to be named ‘Amazon Sponsored Links’, could offer retailers a much-wanted and good alternative to Google and Facebook ads.
According to World Street Journal (WSJ), Amazon’s new ad world will be unveiled later this year. Sources say the Sponsored Links will be similar to Google’s AdWords.
Amazon already runs a small ad placement business on other sites and this new launch will allow the online retailer to expand its business and generate more revenue.
“Amazon could use the data it has about buying behavior to help make these ads much more effective. Marketers would love to have another viable option beyond Google and Facebook for their advertising,” Karsten Weide, an analyst at researcher IDC, was quoted as saying by the WSJ.
This is not the first instance when Amazon and Google are giving tough fight to each other. The rivals keep on tracking and testing each other’s new product range and services. Amazon offers online storage services that are similar to Google. Earlier, Google apparently copied Amazon’s e-commerce business by launching its Shopping Express. Amazon also launched its own smartphone line against Google.